This patent document relates to electronic trading. In particular, this document describes tools and features for use in electronic trading.
An electronic trading system generally includes a number of client devices in communication with one (or more) electronic exchanges. By way of illustration, an electronic exchange receives a trade order from a client device. Upon receiving the trade order, the electronic exchange enters the trade order into an exchange order book and attempts to match quantity of the trade order with quantity of one or more contra-side orders. A sell order is contra-side to a buy order of the same price. Similarly, a buy order is contra-side to a sell order of the same price. Unmatched quantity of a trade order is held in the exchange order book until it is matched by the electronic exchange. Unmatched quantity of a trade order may also be removed from the exchange order book when a trade order is cancelled, either by the client device or the electronic exchange, for example. Upon matching quantity of the trade order, the electronic exchange typically sends a confirmation to the client device that the quantity of the trade order was matched. It is understood that an electronic exchange may operate differently depending on a number of factors, which might include the type of exchange, product traded, regulatory control, and so on.
In addition to matching trade orders, an electronic exchange typically transmits market data to the client devices. Market data may include, for example, price data, market depth data, last trade quantity data, trade order data, order fill data, and so on. For example, the electronic exchange might send a price data feed to the client devices to provide a current inside market (e.g., a highest bid price and a lowest ask price). In another example, the electronic exchange might send a market depth data feed to the client devices to provide the quantities available to be bought or sold at various price levels. Of course, the electronic exchange might send the data to the client devices together using one or more feeds.
In some situations, a client device receives and processes market data without displaying the market data on a display device. These kinds of client devices are typically server-side devices, black boxes, and other programmed trading devices that do not necessarily require a user to view the data. However, in other situations, the client device displays the market data, or at least a portion thereof, on a display device. Accordingly, the client device may include software that creates a trading screen. Generally, a trading screen enables a user to participate in electronic trading. For example, a trading screen may enable a user to view market data, submit a trade order, obtain a market quote, monitor a position, or any combination thereof. Example trading tools that provide this kind of functionality include X_TRADER® and MD Trader®, which are commercially offered by Trading Technologies International, Inc., located at 222 South Riverside Plaza, Chicago, Ill., 60606.
Electronic trading has made it possible for an increasing number of participants to be active in a market at any given time. The increase in the number of market participants has advantageously led to, among other things, a more competitive market and oftentimes greater liquidity. In a competitive environment, like electronic trading, where every second or a fraction of second counts in intercepting trading opportunities, it is desirable to offer tools or features that help a participant effectively compete in the marketplace or even give an edge over others.
The following detailed description will be better understood when read in conjunction with the drawings which show certain example embodiments. The drawings are for the purpose of illustrating certain embodiments, but it is understood that the inventions are not limited to the arrangements and instrumentality shown in the drawings.